Article 31 - Own initiative action by the Regulatory Authority
Regulatory Authority may exercise any of the powers or take any of the steps set out in Article 31(2) at any time where it considers it appropriate to do so in accordance with the Regulatory Objectives, including where it is satisfied that:
Authorised Firm is failing, or is likely to fail, to satisfy the criteria referred to in Articles 29 (2)-(5) (Grant or Rejection of Applications for Authorisation, variation or withdrawal);
Authorised Firm has failed, during a period of at least 12 months, to carry on a Regulated Activity for which it has an Authorisation;
(C) it is desirable to take such steps to exercise such power in order to protect the interests of clients or customers of an
Authorised Firm or the Financial System;
Authorised Firm is in breach of, or has been, in breach of one or more conditions, restrictions or requirements applicable to its Authorisation;
Authorised Firm is (or has been) otherwise in breach of the QFC Law, these Regulations or any Rules or other relevant legislation;
Authorised Firm is in breach of a requirement under Part 6 ( Controllers); or
(G) a request has been received from an
Overseas Regulator in accordance with Article 20 (International Relations and Co-operation).
(2) The powers and steps referred to in Article 31(1) are, by written notice to the
Authorised Firm, to:
(A) impose or vary such conditions, restrictions and requirements on an
Authorisation as the Regulatory Authority shall consider appropriate;
(B) require a
Person specified in the condition, restriction or requirement to take or refrain from taking such action as the Regulatory Authority considers appropriate; or
(C) withdraw the
Authorised Firm's Authorisation or vary its Authorisation to remove one or more Regulated Activities.
(3) Subject to Article 31(4), the
Regulatory Authority may only exercise powers or take steps pursuant to Article 31(2) where it has provided the relevant Authorised Firm beforehand with an appropriate opportunity to make representations to the Regulatory Authority in relation to the proposed steps and has given due consideration to those representations in determining the steps to be taken.
(4) The requirement on the
Regulatory Authority under paragraph 31(3) above shall not apply:
(A) where the
Regulatory Authority concludes that any delay likely to arise as a result of the requirement to allow representations contained in Article 31(3) is prejudicial to the interests of the clients or customers of the Authorised Firm, or the Financial System (provided in such case that the Regulatory Authority shall provide the Authorised Firm with an opportunity to make such representations promptly after such powers have been exercised or steps taken and shall give due consideration to such representations); or
(B) the powers to be exercised or steps to be taken follow a determination by the
Regulatory Authority pursuant to Part 9 (Disciplinary and Enforcement Powers) or a decision by the Appeals Body or Tribunal relating to or affecting the Authorised Firm in question.